Memorandum of Conversation with Secretary of State Dean Acheson, Senator Wayne Morse, Jack McFall, Wilfred Malenbaum, and Thomas C. Mann

DEPARTMENT OF STATE is 696 78 Memorandum of Conversation DATE: February 3, 1950 SUBJECT: Call of Senator Morse on the Secretary PARTICIPANTS: The Secretary Assistant Secretary MeFall Senator vayne Morse of Oregon Mr. wilfred Malenbaum of ED Mr. Thomas C. Mann of MID COPIES TO: s/s; Mr. McFall; Mr. Malenbaum; MID (Mexican Branch); ARA (2); DRA (thru ARA-Miss Grant) ; ARA Board 1-1493 Senator Morse called at his request and stated that he wished to inform ne of certain views which he had formed during his recent visit to Mexico as the guest of the Mexican Government, being the same views which he had ez- pressed to the President on the preceding Friday. The Senator said that he had gone to Mexico in a private capa- city and had spoken to President Alemán in an unofficial capacity. He said that Penex was an efficient operation and that he wished some U.3. Governhent agencies were as efficient; in this connection he referred to the progress which had been nade in building roads, etc. the inference being that this progress was the result of Pemex operations. The Senator also said that he had read the Department's aide nemoire of July 6 and considered that the formula set out in this document was unfair, referring specifically to the paragraph concerning the collection of claims. on this point Mr. Mann stated that the question of the Sabalo clain was no longer related to the question of a petroleum loan to Mexico. The Senator DECLASSIFIED ity E.O. 10501